CAPITAMALL Trust (CMT) yesterday posted sterling first-quarter results, adding that it expects an even stronger showing as the economic rebound aids the shopping malls in its portfolio.
An increase in gross revenue, thanks in part to the full contribution from Sembawang Shopping Centre after an upgrade, drove a 13.6 per cent surge in distributable income to $71.1 million.
Distribution per unit (DPU) jumped similarly by 13.2 per cent to 2.23 cents, up from 1.97 cents for the period ended March 31.
Annualised DPU hit 9.04 cents, compared with 7.99 cents the year before. This represents an annualised yield of 4.9 per cent, based on the closing unit price of $1.86 on Tuesday.
Other factors driving stronger revenue included higher rental rates for new and renewed leases and lower operating and interest expenses. Gross revenue rose 3.4 per cent to $139.1 million.
Net property income also rose by 5.7 per cent to $97.7 million.
As at March 31, CMT’s portfolio occupancy remains strong at 99.4 per cent, with rental renewal rates registering a positive growth of 6.2 per cent over preceding rental rates.
CMT Management chairman James Kor Cher Siang expects CMT to benefit from the broad economic recovery and an expected rise in tourist arrivals.
Looking ahead, CMT intends to acquire Clarke Quay for $268 million, after its unit holders approved the move at a recent extraordinary general meeting. The completion of this acquisition will enlarge CMT’s asset size to about $7.8 billion, up from $7.5 billion as at March 31.
‘With this transaction, we are now firing on all three engines of our growth strategy, comprising active lease management, asset enhancements and yield-accretive acquisitions,’ said CMT Management chief executive Simon Ho.
He expects both of the asset enhancement projects at Raffles City Singapore and Jurong Entertainment Centre to be completed on time by the end of this year and early 2012 respectively.
To date, over 70 per cent of the net lettable area that will be created at Raffles City Singapore has been committed to by tenants.
CMT is also constructing a new two- storey food and beverage annex block in Junction 8, with net lettable area of about 3,500 sq ft.
Tampines Mall, another mall in its portfolio, will see the reconfiguration of certain retail units and the relocation of an existing taxi stand. Both initiatives are to be completed at the end of this year.
CMT’s units dropped one cent yesterday to close at $1.85.
Source: Straits Times, 22 Apr 2010